Ukraine hopes for aid soon - PM

Comment on this story
Arseny Yatseniuk Reuters. Ukraine's new prime minister Arseny Yatseniuk.

Kiev - Ukraine hopes to receive international financial aid soon and is determined to fulfil all the conditions needed to secure support from the International Monetary Fund (IMF), Prime Minister Arseny Yatseniuk said on Friday.

An IMF mission is due in Kiev next week for talks with Ukraine's new leaders, who have said the heavily indebted country needs at least $35 billion over two years to stave off the bankruptcy.

“I hope that in the short-term we will receive foreign currency which will help us to boost foreign reserves and to stabilise the situation,” Yatseniuk told reporters.

Ukraine's foreign currency reserves dropped to $15 billion from $17.8 billion on February 1, with the central bank attributing the fall to intervention moves to prop up the weakening national currency, the hryvnia.

Since then, the central bank has allowed the hryvnia to fall.

The Ukrainian currency hit 10.50 against the dollar on Friday, from 8.2 at the beginning of the year.

Stepan Kubiv, Ukraine's central bank governor, told reporters on Friday the bank had limited foreign currency withdrawals from banking deposits to 15,000 hryvnia ($1,500) per day in a move to tame the volatility.

He also said Kiev had enough reserves to pay off creditors but did not specify over which time period.

An EU diplomat said on Thursday Ukraine's new rulers told the European Union the country's economy needed an immediate infusion of some $4 billion. Kiev owes Russian Gazprom over $1 billion in gas payments from 2013 and 2014.

Once the situation has stabilised, the government will ask the central bank and commercial banks to start large-scale lending to the economy, Yatseniuk said. - Reuters



sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.